New York Community Bancorp: Strike While The Iron Is Hot

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Summary

  • New York Community Bancorp's stock has lost over half of its value since reporting its 4Q earnings, which included a 70% dividend cut.
  • The bank's credit rating was downgraded to junk status by Moody's, causing panic among investors.
  • Despite the bank's exposure to commercial real estate and a rise in loan reserves, its credit quality is not as severe as the market assumes.
New York Community Bancorp Plunges After Dividend Cut

Bloomberg/Bloomberg via Getty Images

New York Community Bancorp, Inc. (NYCB) has lost more than half of its market value since the bank reported its earnings for 4Q on January 31, 2024.

The bank’s earnings were particularly poorly received because loan losses in commercial real

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A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NYCB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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